The coronavirus pandemic has caused major disruptions to the lives of millions of people who are facing tremendous stress related to family, work, and health. Unemployment due to the loss of jobs during the pandemic is rising at an alarming rate. Many of those who still have a job also face lost wages due to business closures and cut hours. Overall, most people are struggling to make ends meet in some way or another. According to financial experts such as Jared Jeffrey Davis Sandusky many people’s lives have changed drastically in a short amount of time due to these measures.
This new pattern of life that we all must abide by has created a shifting economic landscape that people must learn to cope with in order to mitigate financial hardships.If you are facing these economic difficulties due to this shifting landscape, consider the following adviceon managing your finances during this crisis.
Focus on creditors first says Jared J Davis Sandusky, Ohio
When your finances are limited and you face uncertainty about your income, your primary focus must be on reducing monthly expenses. Missing payments of your fixed liabilities such as mortgage payments, credit card bills, and medical debts should absolutely be avoided, however inquiring about possible payment plans orreduced interest is a helpful starting point should you find yourself struggling. Given the current situation, many institutions are offering more leniency, but you must reach out in order to set something up.
Be frank about your situation to your lenders
In order to access some of the above mentioned options, be frank with your lenders, and explain how hard COVID-19 has hit you financially. Being open about your finances can help you get the much-needed relief as lenders will be much more lenient before you acquire missed or late payments. Some creditors are also offering services during the COVID-19 crisis, such as interest waivers for the foreseeable future while the world recovers from this crisis. Credit counselors are also helping people navigate their finances with specialized advice about these programs and may also provide services related to debt consolidation. Contact your institution to see if a counselor is available to speak to you.
Call your service providers
To reduce the burden of fixed monthly payments, talk to your service providers such as those who administer your cable bills in order to look for a better deal or work out ways to generate some cost savings. You can leverage your position by hinting at cancelling their service if not accommodated, which can make them more incentivized to offer something to you. For instance, many people have found success in speaking with their auto insurers to ask for a rebate for the limited amount of driving they might do.
Cancel unneeded subscriptions and memberships
Make a list of all subscriptions and memberships that you have and review them carefully. Many people are surprised by the amount of subscriptions they unknowingly carry, and there has been a rise in apps/services that might help identify what you are subscribed to. Keep only the subscriptions that you truly need and scrap the others, at least for the time being.